The time may be right for you to buy. The markets seem to be stabilizing and the housing inventory is still high. Refinancing is a good option if you want to lower your payments and if you have equity.

Your down payment should be at least 20% and the buying power should be around 2 1/2 times your income, this will protect you from going upside down on a new loan if you lose your job. Make sure you have some savings in the bank (not just a 401 K) before buying. Watch your debt ratio and your buying habits consider all choices when buying.

Unfortunately, over the past couple years the lenders and real estate agents were pushing people to take loans without a real understanding of the economic signs. You need to be educated and thoughtful when buying a property. You should be able to commit to owning that house for at least 5 years. Be sure to follow these rules regardless what others tell you, this is HOW to protect yourself. This is from a reality economic point of view, not just a feel happy buy what you want- We may a little more downward trend until the reality economy and the rental market equal, but I don’t think it will be anything as severe as it has been the last 6 months.